16.With respect to budgetary reporting by governments, which of the following is not true?

A)While GASB standards guide the format of the comparison, it does not require governments to maintain budgetary accounts.

B) The basis of accounting used to report the Actual column in the budgetary comparison schedule is prepared according to legal requirements for budget preparation; even if it is a departure from GASB standards.

C) Budgetary accounts are required to appear in the general purpose financial statements.

D)GASB standards require governments to present a comparison of budgeted and actual results for the General Fund and special revenue funds with legally adopted budgets.

Which of the following expenditure classification schemes may be used by governmental funds

A) Activity

B) Character

C) Function

D) All of the above

Assume encumbrances do not expire at year-end. $16,000 was encumbered during the prior year for a computer and the actual cost of the computer in the current year is $14,000. How does this affect unassigned fund balance?

A) Previous Year: increase $16,000; Current Year: decrease $14,000

B) Previous Year: decrease $16,000; Current Year: increase $2,000

C) Previous Year: no effect; Current Year: decrease $14,000

D) Previous Year: decrease $16,000; Current Year: decrease 14,000

When a computer which is to be used by an activity accounted for by the General Fund of a governmental unit is received, it should be recorded in the General Fund as a(an):

A) Expenditure.

B) Appropriation.

C) Encumbrance.

D) Capital asset.